Correlation Between Legg Mason and Oakhurst Short
Can any of the company-specific risk be diversified away by investing in both Legg Mason and Oakhurst Short at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Legg Mason and Oakhurst Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Legg Mason Global and Oakhurst Short Duration, you can compare the effects of market volatilities on Legg Mason and Oakhurst Short and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Legg Mason with a short position of Oakhurst Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Legg Mason and Oakhurst Short.
Diversification Opportunities for Legg Mason and Oakhurst Short
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Legg and Oakhurst is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Legg Mason Global and Oakhurst Short Duration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oakhurst Short Duration and Legg Mason is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Legg Mason Global are associated (or correlated) with Oakhurst Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oakhurst Short Duration has no effect on the direction of Legg Mason i.e., Legg Mason and Oakhurst Short go up and down completely randomly.
Pair Corralation between Legg Mason and Oakhurst Short
Assuming the 90 days horizon Legg Mason Global is expected to under-perform the Oakhurst Short. In addition to that, Legg Mason is 1.36 times more volatile than Oakhurst Short Duration. It trades about -0.24 of its total potential returns per unit of risk. Oakhurst Short Duration is currently generating about -0.22 per unit of volatility. If you would invest 899.00 in Oakhurst Short Duration on October 14, 2024 and sell it today you would lose (7.00) from holding Oakhurst Short Duration or give up 0.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Legg Mason Global vs. Oakhurst Short Duration
Performance |
| Timeline |
| Legg Mason Global |
| Oakhurst Short Duration |
Legg Mason and Oakhurst Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Legg Mason and Oakhurst Short
The main advantage of trading using opposite Legg Mason and Oakhurst Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Legg Mason position performs unexpectedly, Oakhurst Short can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Oakhurst Short will offset losses from the drop in Oakhurst Short's long position.| Legg Mason vs. Ridgeworth Seix Government | Legg Mason vs. Intermediate Government Bond | Legg Mason vs. Dreyfus Government Cash | Legg Mason vs. Franklin Adjustable Government |
| Oakhurst Short vs. Alliancebernstein Global Highome | Oakhurst Short vs. Siit Large Cap | Oakhurst Short vs. Calvert Moderate Allocation | Oakhurst Short vs. Legg Mason Global |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |